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Rawnoc

01/18/14 7:14 PM

#256283 RE: blind squirrel #256274

Higher production = cheaper input costs as well.

Go to Costco. Input costs for all sorts of things like say sugar drop by 70% per ounce when you get the 50 pound bag compared to the one pounder.

The processors process garbage. I'd bet the whole real cost to buy it is because it's a pain in the ass to package it in weather-tight boxes and ship it to that frozen hell hole. Costs and logistics and stupid ass permit restrictions that a buyer wouldn't necessarily have.
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buenokite

01/19/14 10:29 AM

#256302 RE: blind squirrel #256274

While your questions and concerns are logical and realistic they are, IMO, stuck in the here and now.


I must admit you are correct. I intentionally chose not to talk about past problems that may or not be solved nor did I try to anticipate with a crystal ball any future problems, I instead focused on 3 current issues I see impacting the latest move toward selling processors. To be clear, I am not saying they will not get a sales deal because after all you can go into one-sided deals like RKT, Al Sousa, the Ohio site never specified, or even the Heddle ship deal. But all this talk of imminent sales that will provide significant upfront money and favorable terms seems unlikely based in part on the reasons I laid out.

Secondly I do not think nor did I say the technology will be stuck where it is today but simply those issues and perhaps others must be addressed in my opinion. In fact JBI competitors have focused more on the "upfront" part of the process to handle in part the exact issues I describe regarding broader array of plastics and more contaminant-tolerant. Now on the flip side they have not built the micro-refinery capabilities into the backend like JBI has with their processors.

Lastly back to the deal, I do believe getting into a deal even one-sided with with the right party will have benefits of "real-world" learning regarding all the issues associated. I believe again at least one competitor is doing exactly that kind of learning and adaptation and has for at least two years.